Tesla Motors has secured itself a whopping funding package from the US government which the company plans to use to further its standing in the e-car business.
Under the terms of the deal, the Californian firm will receive $465m (£285m/€333m) of US federal wonga.
The grant will be in the form of low interest loans from the …

But GM & Chrysler missed out.

Welcome to socialism

Why are these companies that make products that people can't afford taking the money from those that can't afford their products? Why not give this money to a company like Ford that produces a product that people can afford.

The last I checked Tesla cars were at least 80K with a waiting list to get one. What in the world is taxpayer (not government, our government doesn't produce anything) money going to this company for?

When is all of this going to end, unemployment rates in the U.S.A are aligned with those of the great depression and we're giving our money to car companies that make automobiles while people are losing their homes everyday and living in their Datsuns?

@ML

There is no bog standard version yet because batteries are still too expensive. You could make a low quality, simple electric car, but the batteries would make it so expensive no one would remotely contemplate buying it. However, top end electric cars are price:performance competitive with top end petrol cars.

There is currently massive research efforts into cheaper and better batteries, and these successes will slowly lead to electric cars aimed at the lower end of the market.

SImilarly, as volumes increase, economies of scale will reduce costs of all the electric components.

This is money well spent (or no worse than any of the other rescue packages) on R&D for electic cars in general.

RE: At least the Nissan

The Roadster isn't the be-all-and-end-all of Tesla's product line, it's just their first offering. In many ways it's a PR stunt designed to generate interest in electric cars and the Tesla brand, and dispel the myth that electric cars are slow poor performers.

Their next product will be the "family sedan" Model S which is at the low end of totally unaffordable but who's to say Nissan's first production electric car will be any cheaper? Besides the S could be the next big fashion accessory, the automotive equivalent of the iPhone.

Read before commenting....

oh yay

So is it a grant or a loan?

The article (and the writer) can't seem to make up their minds ...

... if it's "In the form of low interest loans" then the money has to be repaid, so (providing adequate financial provisions are in place) it doesn't cost the US taxpayer *anything* as the money will be coming back *and* it provides US jobs, thus bringing in more tax money ...

... and the point of this money is to develop the technology and bring down the prices of "bog standard" cars to the point where we can afford to buy one.

Tesla's first cars were mightily expensive, but according to the current court case, they still cost something like 50% more in parts to build than their sticker price (something like $150k per vehicle against a $80-$90k OTR)

And obviously someone needs to standardise recharging sockets, battery packs etc. so doing the design, getting the agreements etc. is going to take time and cost money ... so it's good that there's money being advanced to let Ford, Nissan etc. spend the money on the new technology. And Tesla are producing and selling electric cars, which is more than you can say for many car companies, so providing them with low interest loans to enable them to expand sounds like a great idea to me.

Tesla didn't want enough to start with.

Tesla last year applied for a loan which the government said wasn't enough, so they doubled the number, re-applied and now the government says OK.

Tesla now working with Daimlier Mercedes has a good future and some real car people running it.

The money will be primarily used to get the S into production likely in Southern California.

The $49,000.00 dollar price tag looks to be very average when you start looking at true electrics.

Nissan will supposedly have their electric available in 2010 which for the first two years the car will come from Japan then after that will be built in the US.

Ford has at least been trying on their own and making good progress in doing things right which will pay off big time as they have a building support with the American Public as the one American auto maker that stood on its own two feet without its hand out.

I guess in the big scheme, the money being "loaned" is chicken feed and will get the US headed in the right direction.